CHAPTER VI
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Merchants and Consumers Associations and Organs for Dissemination of Trade News |
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(a) History of
Indigenous Banking
Till 1763, when
the Phulkain states were formed, the history of indigenous banking of the
Sangrur District is not much different from the rest of the parts of the
present Punjab State. During the period 17631948, when PEPSU was formed in
1948, the indigenous bankers such as sharafs, banias and other
indigenous money-lenders were doing the business of lending money, financing
foreign and internal trade. They also gave financial assistance to the rulers
of the princely state of Jind during the period of stress.
(b) General
Credit Facilities
(i) Indebtedness, Rural and Urban
Indebtedness is
the state of incidence of being in debt. Rural and urban areas are different in
many ways and are different in respect of indebtedness as well. Because of the
very structure of urban and rural societies, borrowings in the two areas are
also resorted to for different reasons and even the behaviour of borrowers
differs a lot in rural and urban areas.
Rural
indebtedness is the incidence of borrowing money by the people in rural areas
from various sources. Different amounts of money are borrowed by the people
generally for effecting improvement and development of agriculture, for the
purchase of new agricultural implements, or there placement of old implements,
and for purchasing fertilizers and better seeds. It is, however, found that the
small farmers do not utilize the borrowed money for the purpose for which they
have borrowed it; the money is used for unproductive purposes such as
observance of orthodox costoms, heavy expenditure on weddings, social and
religious festivals etc. for obvious reasons, recovery of loans in rural areas
is not high.
Urban
indebtedness refers to the incident of borrowing of different amounts,
generally higher than those by ruralites, by industrialists and members of the
business community from commercial banks and other Government, semi-Government
and private financial institutions. These loans are seldom used for a purpose
other than the one for which they had been borrowed. Because of the proper
application of borrowings in urban areas, the rate of return from the loans is optimum
and recovery form loans advanced in urban areas is generally satisfactory.
Rate of Interest. The rte of
interest charged in the district varies from place to place, from one lending
agency to another and is related to the purpose for which the amount has been
borrowed. It also varies with respect to surety or security offered.
The commercial
banks in the district charge rate of interest fixed by the Reserved Bank of
India from time to time. Their rates also differ from person to person and
according to the amount advanced and for the purpose it is lent. The
co-operative societies advance loans at the lower rates of interest ranging
from 21/2 to 81/2 per cent. The amounts advanced under
the State aid to industries Act, 1937, carry rates of interest at 10 per cent[P1].
The indigenous
money-lenders charge interest varying from 12 to 25 percent or even more. The
unregistered money-lenders advance loans at a still higher rate of interest.
Sometimes, in rural areas, the interest is calculated in kind when the loan is
advanced in kind. For instance, a sahukar may advance loan in the form
of a quintal of wheat and in return he recovers a quintal and a half in lieu
thereof at the time of harvest. This practice is, however, gradually
disappearing because of the coming up of the institutions which extend liberal
financial assistance in the rural areas.
Since people have
become literate in the there area adequate banking facilities available to meet
their requirements, the system of usury has become outdated. However, in the
remote areas where people are still backward, the money-lenders take advantage
of their ignorance and helplessness by charging high rate of interest.
(ii) Role of Private Money-lenders
and Financiers
Money-lenders. The
money-lenders have been by far the most important credit agency since time
immemorial. The money-lenders or the bania still dominates the rural
sector of the district economy. Though the co-operative movement has given a
death blow to the money-lenders, yet they have not been eliminated altogether.
Several methods of advancing loans are employed by the rural money-lenders such
as loans on personal surety, against produce, land, ornaments, property, etc.
the village money-lender mainly advances loans to the needy and he is
responsible for a good amount of banking credit available in the rural areas of
the district. Generally, he runs his grocery shop in the village and advances
loans to the village people for consumption purposes. Clearance of the debt is
generally done at the harvesting time. Thus, the village money-lenders still
continues to be the refuge of the indigent cultivator in the times of need.
The money-lenders
are now required to get themselves registered with the concerned Sub-Divisional
Officer (Civil) and get a licence under the provision of the Punjab
Registration of Money-lenders Act, 1938. Besides, they are required to maintain
regular accounts in the books prescribed under the Act. The number of
registered money-lenders in the District, as on 31 March 1978 was 79 (42 urban
and 37 rural). Besides, there are a number of unregistered money-lenders.
(iii) Government and Semi-Government
Credit Agencies
To save and
loanee from the clutches of the traditional money-lenders, a large number of
Government and Semi-Government agencies have been established to provide
financial in rural as well as in urban areas of fair terms and on reasonable
rate of interest. These agencies includes the Punjab Financial Corporation, the
Khadi and Village Industries Commission, joint-stock banks, co-operative banks
and co-operative societies.
The Punjab
Financial Corporation provides medium and long-term loans to industrial
concerns established in the district. It has powers to provide finance upto Rs
20 lakhs in the case of a public limited company or a registered co-operative
society and upto Rs 10 lakhs in other cases. The rate of interest charged by
the Corporation is 3 per cent above the bank rate with a minimum of 9 per cent
per annum. The loans are repayable in 10 years and these are advanced
hypothecation of land, buildings, plant and machinery, etc. with a margin of 40
per cent of the net assessed value. In case of Government guarantee, the margin
is reduced to 25 per cent.
The khadi and
Village Industries Commission meets the financial needs of the khadi and
village industries for short-term loans. For setting up new industrial units
and for extension/modernization of exsiting units, financial assistance is
provided by the Industries Department, Punjab, under the State Aid to
Industries Act, 1935, at nominal rates of interest. Loans are also advanced by
the State government to the agriculturist for the purchase of agricultural
implements, seeds fertilizers, tractors, etc. Taccavi loans are also
given to the agriculturists by the State Government for development and
promotion of agriculture. The co-operative societies advance loans against
promissory notes. 14 joint stock banks which were nationalized in July 1969,
have also extended the loan facilities against personal sureties, shares and
other easily marketable goods.
(iv) Joint-Stock Banks.
In the Sangrur
District, modern organized system of banking was introduced for the first time
with the opening of the Jind Co-operative Bank at Sangrur in 1922, with a fully
paid-up capital Rs 1,50,000. Half of the capital was provided by the Maharaja
of the Jind State and the other half was subscribed by the Public. On 14
October 1950, the Punjab National Bank opened its branch at Sangrur. The
Sangrur Central Co-operative bank also started functioning on 1 January 1952.
With the passage of time, all the banks engaged themselves in expansion
activities and a number of them opened their branches at various places in the
District.
State Bank of
Patiala is the lead Bank for Sangrur District. Besides, the following banks are
also functioning in the district: -
1.
State Bank of India
2.
Punjab National Bank
3.
Union Bank of India
4.
Central Bank of India
5.
Indian Overseas bank
6.
Punjab and Sind bank
7.
New Bank of India
8.
Lakhsmi Commercial Bank
9.
Syndicate Bank
The
Number of banking offices at various places in the District, as on 31 March
1978, is given in Appendix I, on page 184 at the end of this chapter.
The total
deposits and banking credit in the district as on 31 March 1978 amounted to Rs
37.15 crores and Rs 15.35 crores, respectively.
(v) Post Office Saving Bank
Accounts.
The
post Office Saving Bank Accounts scheme was started in India on 1 April 1882.
Earlier, it was known as Government Savings Banks whose foundations were laid
in 1833 when the first such bank was started at Calcutta in 1833.
In
1977-78, the number of depositors who opened new accounts with the Post Office
Saving Bank in the district was 62,887. The gross deposit in all the accounts
with the Post Office Saving Bank in the district, as on 31, March 1978,
amounted to Rs 1,87,13,012.
(vi) Co-operative Credit. For a
considerably long period, the usual sources of short-term finance of the
farmers were the money-lenders who charged exorbitant rates of interest and
resorted to many malpractices to cheat ignorant and illiterate cultivators. In
this background, the co-operative movement was launched in this country for
imparting credit facilities to the farmers.
The idea of using
co-operative in India as a means of combatting rural indebtedness and supplying
rural credit was suggested first in the Report of the Frederick Nicholson in
1895-97. However, a real beginning of the Co-operative Movement India was made
with the passing of Co-operative Credit Societies Act, 1904.
The Balian
Co-operative Credit Society in village Balian (Tahsil Sangrur) was the first
co-operative society registered in the District in 1916. It has a membership of
15 and a share capital of Rs 150. Since this area comprised a major portion of
the Princely State of Jind, the movement did not make much progress as the
necessary laws could not be framed speedily. However, after the independence,
when this area became a part of the PEPSU, the Co-operative Movement made a
considerable progress. In 1956, with a merger of the PEPSU in the Punjab, the
area of present Sangrur District also became a part of the Punjab, and the
Co-operative Movement made further progress under the Five-Years Plans. There
were, 1,993 co-operative societies in Sangrur District as on 30 June 1978. In
addition, the Central Co-operative Bank functions at Sangrur with 30 branches
at different places in the District.
Co-operative Credit Societies. The Co-operative
Credit Society (Bank) can be started with ten or more persons normally
belonging to a village. The value of each share is generally nominal to enable
even a farmer of meager resources to become a member of the society. Each of
the members is fully responsible for the entire loss of the society in the
event of its failure.
On 30 June 1978,
there were 821 Co-operative Credit Societies (740 Agricultural and 81
Non-Agricultural) in the district. Their function is to mobilize savings and to
advance loans at reasonable rates of interest to the emebers for productive
purposes.
The details
pertaining to membership and working of the Agricultural and Non-Agricultural
Co-operative Credit Societies functioning in the district during 1973-74 to
1977-78, are given in appendices II & III at pages 186 and 187.
(c) Insurance and Small Savings
Insurance. The agencies doing
insurance business play an important role in tapping a portion of the public
savings in form of insurance premia. With the nationalization of life insurance
business in 1956, the Life Insurance Corporation of India has become the
foremost and the largest single agency doing life insurance business in India.
Prior to 1956, there was neither a branch office nor a chief agency of any
insurance corporation in the district. Only the agents and inspectors of
various insurance companies procured business for their respective insurance
companies. With the establishment of the Life Insurance Corporation of India on
1 September 1956, the position became quite different. A branch of the Life
Insurance Corporation of India was opened at Sangrur in 1949. Thereafter, a
Development Centre of the Sangrur Branch was set up at Malerkotla on 1 April
1962. So far, there is only one branch of Life Insurance Corporation of India
in the whole of the Sangrur District. The number Development Officer and Agents
in the district, as on 31 March 1978, was 179 and 129 respectively. Thus in the
matter of coverage by life insurance agencies, the district has lagged behind as
compared to other districts of the state.
The life
Insurance Corporation of India advances loans to the policy-holders, government
and Semi-Government institutions/agencies for different purposes at varying
rates of interest.
The following
statement shows the performance of the Life Insurance Corporation of India in
the Sangrur district, During 1973-74 to 1977-78:
|
Year |
Name of branch |
Number of policies |
Sum assured Rs |
|
|
1973-74 |
Sangrur |
--- |
2,107 |
29,971,000 |
|
1974-75 |
Sangrur |
--- |
1,601 |
20,928,000 |
|
1975-76 |
Sangrur |
--- |
1,876 |
24,468,000 |
|
1976-77 |
Sangrur |
--- |
1,653 |
21,378,000 |
|
1977-78 |
Sangrur |
--- |
1,461 |
19,733,750 |
(Source: Divisional Manager, Life Insurance Corporation of
India, Chandigarh Divisional, Chandigarh and Branch Manager, Life Insurance
Corporation of India, Sangrur)
Before
the nationalization of general insurance companies on 1 January 1973, a number
of private companies were engaged in the work on general insurance. Besides,
the Life Insurance Corporation of India had also started the general insurance
business with effect from 1 January 1964. On 1 January 1973, all private
companies were nationalized and an apex body known as the General Insurance
Corporation, came into existence. Functioning under the General Insurance
Corporation are the general insurance wing of Life Insurance Corporation and 4
general insurance companies. The four general insurance companies are the
Oriental Fire and General Insurance Company Ltd., the New India Assurance
Company Ltd., the National Insurance Company Ltd. and the United India Fire and
General Insurance Company Ltd.
General
insurance policies of every type are issued for only one year and are renewable
every year. The risks covered under the general insurance are broadly of three
types, viz. fire, marine (transportation of goods) and miscellaneous insurance.
Under the miscellaneous insurance, there are about 20 to 25 types of insurance
including motor and all other types of insurance like fidelity guarantee,
aviation insurance, burglary, personal accidents, etc. Besides the above,
cattle insurance has also been introduced from 1974. It is also proposed to
introduce crop insurance on experimental basis.
Small Savings. The purpose
of Small Savings Scheme is to mobilize public savings and to raise funds for
financing development projects and to, simultaneously encourage the habit of
thrift among the people. Originally, the Small Savings Scheme was introduce by
the Government of India during the First World War (1914-18). During the Second
World War (1939-45), the Government of India started the Post Office National
Savings Certificates Scheme in 1943 with a view to withdrawing excess
purchasing power from the people. After Independence, the scheme was made more
attractive for the people by offering higher rates of interest and inculcating
in them the habit to save. This was done with the objective of meeting the
rising developmental expenditure for the Five-Year Plans of the country.
Small
Savings Scheme is a centrally-sponsored scheme and is controlled by the
Ministry of Finance (Department of Economic Affairs), Government of India. The
National Savings commissioner, Government of India, with his headquarters at
Nagpur, heads the National Savings Organisation and looks after the small
savings work in the country. Under his direct control, there are Regional
Directors, National Savings, posted in different States. The Regional
Directors, National Savings, posted in different States. The Regional Director,
National Savings, Punjab, is posted at Chandigarh. He has under him four
Assistant Regional Directors, National Savings, At Amritsar, Jalandhar,
Ludhiana and Chandigarh. In each district, there is a District Savings Officer,
National Savings Scheme. In some of the important districts, however, there are
two District Savings Officers. All these officers are under the direct control
of the National Savings Commissioner. In the Sangrur District there is one
District Savings Officer at Sangrur.
The Directorates
of Small Savings have been set up in the States to ensure better co-ordination
between the Central Organisation and the State Governments. The Director Small
Savings, Punjab, Chandigarh, is the head of the State Governments small
Savings Department. At the district level, the District Savings Officer is the
co-ordinating agency between the Central Organization and the district
authorities in the promotion and growth of the movement. The main advantage to
a State under this programme is that out of the money invested by the people in
Small Savings, two-thirds of it is available to the State Government as
interest-bearing loan from the Government of India for financing developmental
activities within the State.
The number of
agents who convassed and propagated for the Small Savings Scheme on commission
basis in the Sangrur District, as on 31 March 1978, was 76.
The gross and net
investments under the Small Savings Scheme in the district, during 1973-74 to
1977-78, are given below:
|
Year |
Gross Investment ( Rs ) |
Net Investment ( Rs ) |
|
1973-74 |
4,41,00,000 |
1,43,55,000 |
|
1974-75 |
4,28,00,000 |
(-) 78,00,000 |
|
1975-76 |
2,60,00,000 |
(-) 71,00,000 |
|
1976-77 |
2,17,00,000 |
(-) 58,00,000 |
|
1977-78 |
3,55,00,000 |
1,43,91,000 |
(Source: District
Savings Officer, Sangrur)
The adoption of
decimal coinage system by Government of India in April 1957, brought about a
tremendous change in the coinage system of our country. The old rupee was
divided into half a rupee (dheli or athani), one-fourth of a
rupee (pauli or choani), one-eighth of a rupee (doani),
one sixteenth of a rupees (anna), one-thirtysecond of a rupee (takka)
and one-sixty fourth (pice) of a rupee. An anna was equal to 4 pice or
12 pies, there being 3 pies in pice.
Decimal system of
currency and coinage has been adopted by almost all countries in the world.
Therefore, with a view to bringing about uniformity and to facilitating
comparison with currencies of other countries of the world, decimal coinage
system was introduced in the country in 1957. Now a rupee consists of 100 paise,
with Coins in the denominations of 1, 2, 3, 5, 10, 20, 25, and 50 paise.
Currency notes are issued in the denominations 1, 2, 5, 10, 20, 50 and 100
rupees. Earlier, currency notes were also issued in the denomination of 1,000
rupees but these have been demonetized w. e. f. 16 January 1978. Simultaneously
with other districts of the Punjab, the decimal coinage completely replaced the
old coinage in the Sangrur District with effect from 1 April 1964. In the
initial stages of the introduction of the new currency, the public in general
and rural masses in particular faced some difficulties as the old system was
deep-rooted in them. To acquaint the people with the decimal coinage, the
Government issued pamphlets and displayed posters all over the country to
facilitate the switch-over to new system. Naya paisa, named in the beginning,
is now called paisa. On the withdrawal of the old coinage from circulation,
the prefix naya became redundant and was dropped with effect from 7 June
1964.
The decimal
coinage system has brought about a great transformation in the whole accounting
procedure. Undoubtedly, it has made the accountancy and book-keeping much
easier, quicker and simpler.
(B) Trade
and Commerce
The
main caste engaged in trade and commerce in this district is the bania. Since
agriculture has been the major occupation of the people, items of export
comprised mainly the foodgrains and other farm products. As the district was
industrially backward, the chief items of import were cloth from Delhi and
Ludhiana, bronze and brass vessels from Muradabad, Rawari, Patiala and
Jagadhari. Further, gold and silver lace and glass bracelets were imported from
Patiala, Delhi and Ludhiana.
Malerkotla,
Dhuri, Sangrur, Sunam, Barnala and Dhanaula have been main centers of trade in
the Sangrur District. Malerkotla town was previously the headquarters of
Malerkotla State, and as such it was an important centre of trade and commerce.
English cloth, salt, and lime were imported from Delhi, Amritsar and Lahore;
while grain, instruments of survey, paper and iron utensils were exported to
Ludhiana, Bathinda, Lahore and Patiala. Cotton was sent to Bombay or Karachi.
Barnala was noted for its earthenware chilms, haqqis and surahis. Sunam
excelled in cotton pagris, khes and Chautahis. Sangrur was
very famous for gold and silver ornaments.
At
present, there is no heavy industry in the District except the Malwa Sugar
mills Ltd; there exist only small scale and cottage industries. Accordingly the
position of this district with respect of industrial goods is very poor.
However, Malerkotla, Barnala and Sunam are gradually coming up in the
industrial map of the State. Malerkotla town in a pioneer in the manufacture of
spare parts of sewing machines and cycle parts. Badgemaking (for Defence) and
leather processing are other important small-scale industries of Malerkotla are
flourishing mainly because of Mohammedan skilled workers and artisans who are
concentrated in or around the town and are inclined to stick to one place only,
thus the main industrial products exported from Malerkotla to other parts of
the country re spare parts of cycle and sewing machines, defence badges and leather.
The town of Ahmedgarh is well-known for the manufacture of khurpas, kahis and
datis. Cotton textile industry is also emerging in the district.
Since
agriculture is the main occupation of the people, there is brisk trade in
agricultural products. The grain market of Barnala is the biggest in the
district for the sale of wheat, maize and cotton. Tapa is also a good cotton
market. The vegetables especially methi and gobhi, grown
around Malerkotla are sent out to many big towns of the country. This abundant
cultivation of vegetables is done by the Kamboj and Arains, the two hardworking
Mohammedan communities inhabiting the area.
The
sum up, the main exports of the district are wheat, gram, cotton, gur, sugar,
and other farm products and spare parts of cycle and sewing machines, defence
badges and leather goods, and among imports kerosene, coal, cloth, iron and
machinery are the main items.
That
usual course of trade for agricultural produce in the district is form the
agriculturist to the consumer through the middleman. There is no director link
between the grower and the consumer. Commission agents, whole-sellers and
retailers act as middle men between the grower and the consumers.
The
purchasers of the grain market gather at the shop of kachcha arhitia and
the sale of the commodities starts in open auction, under the supervision of
the auctioneers appointed by the market committee, through the commission
agents turn by turn. Such sales are conducted daily during the hours fixed for
this purpose. Kachcha arhitias, who sell the commodities on behalf of
the cultivators, receive commission on fixed rates permissible under the
bye-laws of the market committee. The delivery of the goods is made at the shop
of the market committee. The delivery of the goods is made at the shop of the
kachcha arhitia and the purchaser himself arranges for their carriage to his
premises at his own cost. The kachcha arhitia pays the sale price to the
seller immediately after the transaction is completed.
(i)
Regulated and unregulated markets. In order to save the agriculturists from
exploitation by middleman, the State Marketing Board has been set up by the
State Government. The activities of agricultural marketing are regulated by the
Board under the Punjab Agricultural Produce Markets Act, 1961, which provides
for regulation of markets and formation of market committees. These regulated
markets play an important role in helping the sale of commodities at fair and
reasonable prices. The cultivator is now better protected against the various
malpractices usually adopted earlier by traders (Beoparis) and other
intermediaries. The whole of the district has been covered by the regulated
markets and purchase centers to save the cultivators from unhealthy market
practices and to ensure him the fair price for his produce.
In
the regulated markets, all commodities brought by the growers, village traders,
etc. are sold in open auction in the presence of dealers under the supervision
of the auctioneers appointed by the market committee. Auction is held during
the market hours at each shop turn by turn. When the auction is over, a receipt
showing the weight, rate and net price after making necessary deductions is
issued to the cultivator who later on showing the same, receives payment from
the arhtias.
There
are 10 regulated markets in the district: Sangrur, Barnala, Dhuri, Lehragaga,
Malerkotla, Sunam, Ahmedgarh, Tapa, Khanauri and Bhawanigarh. In these
regulated markets the main commodities for which transactions usually take
place are wheat, grain, maize, paddy, oil seeds, cotton and groundnut, etc.
There
is no unregulated market in the district as the whole of the Punjab State has
been brought under the regulated markets.
(ii) Fairs (melas) and other Rural
Marketing Centres
Fairs
(melas) A
number of religious, social, recreational and seasonal fairs and festivals are
held in the district at various places. Besides normal activities at a fair,
many kinds of trading activities also take place at these fairs and festivals.
The important fairs and festivals held in the district re mentioned in Chapter
III, people.
Cattle
Fairs. These
fairs are of great advantage to the agriculturists as they facilitate the sale
and purchase of cattle. These are also a source of income to the Government by
way of fees charged on the sale/purchase of cattle. Such fairs are held at
Sangrur, Dhanaula, Sunam, Malerkotla, Bahadur Singwala, Allal, Bagrian, Tapal,
Jallan, Bhawanigarh, Barnala, Lehrgaga, Moonak, Amargarh, Dhuri and
Dug-Bahadurpur. A big cattle fair is held every year at Sunam on the occasion
of Baisakhi; cattle fairs at Malerkotla and Dhanaula are held regularly every
month.
(i)
Co-operative Marketing. Keeping in view the malpractices suffered by the cultivators in the
marketing of agricultural produce, the need for co-operative marketing was felt
by the Government. Consequently, a number of co-operative marketing societies
were set up at various places in the district. The cultivators can now store
their produce in the godowns of these marketing societies. Previously, they had
to dispose it of immediately after harvesting. These societies act as a check
against malpractices such as under-weighing, unauthorized deductions and
delayed payments by the arhtias.
The
District whole sale Co-operative Marketing and supply Society at Sangrur was
registered on 12 November 1957 with a membership of 24 societies and share of
members Rs 1,250. On 30 June 1978, its membership was 261 with a share capital
of Rs 1.39 lakhs. The Managing Committee of the society consisted of 10
members, in addition to three Government nominees. The society opened its 3
branches at Khanauri, Bhawanigarh, and badbar in 1969. In addition to the
above, the following registered co-operative marketing societies are also
functioning in the district:
|
Serial no. |
Name of Society |
Date of Registration |
|
1 |
The Bhawanigarh Co-operative Marketing-cum-Processing Society Ltd., Bhawanigarh |
28-8-1951 |
|
2 |
The Dhuri Co-operative Marketing-cum-Processing Society Ltd., Dhuri |
20-4-1954 |
|
3 |
The Malerkotla Co-operative Marketing-cum-Processing Society Ltd., Malerkotla |
18-5-1954 |
|
4 |
The Sunam Co-operative Marketing-cum-Processing Society Ltd., Sunam |
11-1-1957 |
|
5 |
The Sangrur Co-operative Marketing-cum-Processing Society Ltd., Sangrur |
23-4-1957 |
|
6 |
The Barnala Co-operative Marketing-cum-Processing |
15-11-1957 |
|
7 |
The Lehragaga Co-operative Marketing-cum-Processing Society Let., Tapa |
15-10-1958 |
|
8 |
The Tapa Co-operative Marketing-cum-Processing Society Ltd., Tapa |
4-12-1959 |
|
9 |
The Ahmedgarh Co-operative Marketing-cum-Processing Society Ltd., Ahmedgarh |
29-12-1960 |
|
10 |
The Moonak Co-operative Marketing-cum-Processing Society Ltd., Moonak |
18-1-1977 |
The
co-operative marketing societies have the primary co-operative credit societies
formed by agriculturists in rural areas, and also the individuals as their
affiliated members, who contribute share capital and market their produce
through these societies. These societies are registered under the Punjab
Co-operative Societies Act, 1954.
The
Central-operative Banks are the main financing agencies for the co-operative
marketing societies. A number of godowns have been constructed by the
co-operative marketing societies both in rural and urban areas, where storage
facilities are provided to the members. The number of godowns owned by these
societies in the district, as on 30 June 1978 was 531. These godowns are of
much use in collecting the produce of cultivators in rural areas, and
arrangements are made for its transportation to the nearest marketing society.
The storage charges in these godowns are quite nominal.
The
work done by the co-operative marketing societies in the District, during
1973-74 to 1977-78, is shown in Appendix IV at page 188.
(ii)
Co-operative Consumers Stores. There is only one co-operative consumers store in the district, namely,
the Sangrur Central Co-operative Consumers, Store Ltd., Sangrur, which was
registered on 5 August 1966. Its aims are to ensure fair distribution of
various commodities to the consumers at reasonable rates. On 30 June 1978, it
was running five branches (three at Sangrur, one each at Dhuri and Malerkotla)
in the district. The membership of the store, as on 30 June 1978, was 3,770
with a paid-up share capital of Rs 3,52,230.00.
The
State Trading Scheme in Foodgrains was introduced in the Sangrur
District along with the rest of the State in 1958-59 to provide essential
commodities to the consumers at reasonable rates. On 31 March 1978, there were
113 fair price shops functioning in urban areas and 290 rural areas of the
district. The State Trading in foodgrains was introduced in the State during
1959. The total quantity of foodgrains purchased by the Food and Supplies
Department under this scheme in the Sangrur District, during 1973-74 to
1977-78, is given as under:
|
Year |
Quantity purchased (tones) |
|
1973-74 |
1,98,201 |
|
1974-75 |
1,04,586 |
|
1975-76 |
1,36,150 |
|
1976-77 |
1,35,748 |
|
1977-78 |
1,31,253 |
(Source: District Food and
Supply Controller, Sangrur)
(e)
Merchants and Consumers Associations and Organs for Dissemination of Trade
News
Merchants Associations:
There
is no merchants or consumers association functioning in the district.
Marketing
Intelligence. There
is no such regular agency for the collection and dissemination of market news
in the district. The public in general visits the marketing centers
periodically and keeps itself in touch with affairs of the market. The village
traders who are regularly in touch with] the market conditions often
communicate the market news to the public. In some of the regular markets, the
market committees exhibit the market news on a board for the public to know the
market fluctuations. Market news are also communicated to dealers at different
places through correspondence and by telephone. The co-operative marketing
societies receive market information cards from allied societies. The All India
Radio, Jalandhar, broadcasts a daily bulletin on the rates prevailing in
various grain markets of the state.
The
weights and measures used in the District during the British periods were as
under:
(a) In urban areas: Maund, 20-seer, 10-seer, 5 seer, 4-seer
1-seer,
Chattank tolas, mashas and ratis.
(b) In rural areas 21/2Maund (Kachcha) = 1 Maund
11/4
Maund (kachcha) =20 seer
1
Maund (kachcha) = 16 seer
1
dhari (10 seer kachcha) =4 seer
1
Panjseri (5 seer kachcha) =2 seer
21/2
seer (kachcha) = 1 seer
The
weights and measures differed not only from district the district but also from
state to state in many respects. All transactions between various districts and
states had to clearly spell out the relationship between the weights and
measures used by the parties to a transaction. This type of trading was bound
to create some problems. Therefore to standardize weights and measures
throughout the country, the Government of India passed the Standard of Weights
Act, 1939, which came into force in 1942 Under the Act both the systems were
prescribed, viz. the Indian System i.e. tola, seer and maund, and
avoirdupois systems, i.e. ib., cwts., and tons. The Punjab Weights and
Measures Act, 1941 brought some uniformity in the system of weights and
measures.
All
these measures did serve some useful purpose but the ultimate objective of introducing
uniformity in the system of weights and measures was still not fulfilled. Also,
many countries of the world had adopted the metric system of weights and
measures and, therefore, for the sake of uniformity in the weights and measures
used in international trade and in trade within the country, the metric system
of weights and measures was introduced with effect from October 1958, in
accordance with] the provision of the Standards of Weights and Measures Act,
1956, passed by the Parliament and the Punjab Weights and Measures
(Enforcement) Act, 1958, framed thereunder. In the case of weights, the use of
old weights too was allowed for a period of two years and was discontinued from
October 1960 when the use of metric weights was made compulsory. In the case of
measures, a period of one year was allowed for the measures previously in vogue
and, from April 1962, metric measures were made compulsory. The use of metric
units also became obligatory from April 1962.
To
begin with, the public in general and the rural masses in particular did
experience difficulty in understanding the new system of weights and measures.
To acquaint the people with the metric system of weights and measures, the
Government issued pamphlets and displayed posters all over the country
explaining in simple language the conversion of old measures into the metric
ones. Thus in due course of time, people got accustomed to the use of the
metric system of weights and measures.
There
are 3 Inspectors, Weights and Measures, who verify weights, scales, etc used in
the district.
(g) Storage and Warehousing
Scientific
storage of foodgrains and other products is of a very recent origin. Earlier,
the storage of foodgrains was done in bharolas or back-rooms of the
residential houses, in the open or in the bags. Thus used to affect the stored
stuff as the houses in the villages were rarely cemented. Though, this old way
of storage is on the decline, yet it does continue alongwith the modern and
scientific system of storage.
In
the second half of the 20th century, there has been tremendous
progress in adopting methods and techniques of scientific storage. The
co-operative agricultural societies have built up godowns, with the government
assistance, to facilitate storage in rural areas. The cultivators can store
their produce in such godowns during the slack season the are under no
obligation to resorts to distress sale of their produce. They can also get
advances on the basis of their produce stored in the godowns. The co-operative
marketing societies also get loans and subsidies from the Government for the
construction of godowns. In the mandis, the commission agents usually
provide the back-rooms of their shops for storage purposes. Such rooms are
cemented and the commodities are safe from any kind of damage. On almost all
important railway stations, godowns or sheds have been provided for temporary
storages of goods and parcels.
Keeping
in view the need for scientific storage of foodgrains and other agricultural
commodities, it was decided to set up warehousing corporations in public sector
as per recommendations of the All India Rural Survey Committee in 1954.
Consequently, the Central Warehousing) Corporation Act, 1956. These
corporations were reorganized under the Warehousing Corporation Act, 1962
enacted by the Parliament.
The
Punjab State Warehousing Corporations was set up in January 1958 and after
reorganization of the erstwhile State of Punjab in 1966, it was re-constituted
under the Warehousing Corporations Act, 1962 with effect from 1 November 1967.
The Punjab Government and the Central Warehousing Corporations are the two
equal shareholders of the State Warehousing Corporation. Its main functions are
to provide scientific storage at low charges administration arrange for cheap
and quick credit facilities against the storage produce; to acquire and build
godowns and warehouses at such places with the state as it may, with] the
previous approval of Central Warehousing Corporation determine, to run
warehouses in the State for the storage of agricultural produce, seeds,
manures, fertilizers and notified commodities; to make arrangements for the
transport of agricultural produce, seeds, manure, fertilizers and notified
commodities to and from warehouses. Further, the Punjab State Warehousing Corporation
acts as an agent of the Central Warehousing Corporation or of the Government
for the purchase, sale, storage and distribution of agricultural produce,
seeds, manures, fertilizers and notified commodities.
The
Central Warehousing Corporation and the State Warehousing Corporations have
acquired expertise in scientific preservation of agricultural and other
products. Though, functioning on business principle, they provide services at
very reasonable rates for scientific storage of agricultural produce,
fertilizers and other agricultural inputs. The main benefits which have accrued
to the agriculturists from the Warehousing Corporations are:
a)
Scientific
storage of their produce in rat-proof, dump-proof and leak-proof godowns.
Stocks remain post-free throughout the period of storage by preventive and
curative measures.
b)
Cheap
credit is available from the scheduled banks on the pledge of warehouse receipt
issued by the Warehouse Manager in token of the stocks stored in his warehouse.
This credit is available to the depositors according to credit restrictions
imposed by the] Reserve Bank of India from the time to time.
c)
Agriculturist
have the opportunity to get market intelligence which enables them to sell
their produce at appropriate occasion.
The
stocks stored in warehouses re guaranteed against damages by pests, thefts,
fire, floods, etc. the warehousing corporations store the produce in hired as
well as in their own constructed godowns. To encourage the farmers to deposit
their produce in the warehouse, these corporations generally allow rebate on
storage to the farmers. Apart from providing storage services, warehousing
corporations also undertake function and chemical treatment of stocks stored in
the godowns of the agriculturists to avoid infestation. Agriculturists are also
trained and educated for scientific storage of their produce in their own
houses, without charging anything from them.
In
the Sangrur District, the Punjab State Warehousing Corporation had, as on 31
March 1978, its own constructed godowns at seven places with a total capacity
67,183 M.T; the total hired capacity throughout the district was 15,752 M.T.
the following table indicates the location of owned warehouses with their dates
of opening and total capacity in the district:
|
S.No. |
Name of Warehouse |
Date opening |
Total capacity during 197-78 (M. T.) |
|
1 |
Ahmedgarh |
12/64 |
I, 988 |
|
2 |
Barnala |
3/62 |
12,979 |
|
3 |
Dhuri |
12/61 |
8,440 |
|
4 |
Lehragaga |
2/68 |
7,056 |
|
5 |
Tapa |
6/62 |
11,924 |
|
6 |
Malerkotla |
5/65 |
7,752 |
|
7 |
Sunam |
5/65 |
9,041 |
For
the storage of perishable commodities like vegetables and fruit, cold storages
are being set up. The cold storages help in increasing the life of perishable
goods and this in turn helps the producer in getting a remunerative price for
his produce, and the consumer in getting those persishable goods for longer
time. The cold stores have falsified the idea of seasonal fruits or seasonal
vegetables, thanks to the cold storages, the fruits and vegetables can
preserved safely for months together and the consumer can have them during any
season of the year, after paying some extra charge. In the Sangrur district, a
number of cold storages are being run in private sector.
APPENDIX I
(Vide page 168)
Number of Banking Offices at Various
Places in the Sangrur District, as on 31 December, 1977
|
|
Number of Offices |
|||||
|
Town/Village |
State Bank of India |
State of Patiala |
Punjab National Bank |
Other commercial Banks |
Co-operative Bank |
Total |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
Sangrur
Tahsil |
|
|
|
|
|
|
|
Bhawanigar h |
|
1 |
|
1 |
1 |
3 |
|
Duri |
|
1 |
1 |
2 |
1 |
5 |
|
Duggan |
|
1 |
|
|
|
1 |
|
Gharachon |
|
|
|
1 |
|
1 |
|
Longowal |
|
|
1 |
|
|
1 |
|
Nadampur |
|
|
|
|
1 |
1 |
|
Sangrur |
1 |
1 |
1 |
3 |
1 |
8 |
|
Saron |
|
|
|
|
1 |
1 |
|
Malerkotla
Tahsil |
|
|
|
|
|
|
|
Ahmedgarh |
|
2 |
1 |
2 |
1 |
6 |
|
Amargarh |
|
|
1 |
|
1 |
2 |
|
Bagarian |
|
|
|
1 |
|
1 |
|
Bhadaur |
|
1 |
|
|
|
1 |
|
Chaunda |
|
|
|
1 |
|
1 |
|
Dhuri |
|
1 |
1 |
2 |
1 |
5 |
|
Kup |
|
1 |
|
|
... |
1 |
|
Ladda |
1 |
|
... |
|
|
1 |
|
Lasoi |
|
... |
|
1 |
|
1 |
|
Manvi |
1 |
... |
|
|
|
1 |
|
Mimsa |
|
|
|
1 |
|
1 |
|
Sandaur |
1 |
|
|
|
|
1 |
|
Sherpur |
|
|
1 |
|
1 |
2 |
|
Barnala Tahsil |
|
|
|
|
|
|
|
Barnala |
... |
1 |
1 |
4 |
1 |
7 |
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
Badbar |
|
|
|
1 |
|
1 |
|
Bhadaur |
|
1 |
|
|
|
1 |
|
Cheema |
|
1 |
|
|
1 |
2 |
|
Dhaula |
... |
1 |
|
|
|
1 |
|
Dhanaula |
1 |
|
1 |
... |
|
3 |
|
Hadiaya |
|
1 |
|
|
|
1 |
|
Mahal Kalan |
|
|
|
1 |
1 |
2 |
|
Sanghera |
|
|
|
1 |
|
1 |
|
Sehna |
|
1 |
|
|
|
1 |
|
Sekha |
|
|
|
1 |
|
1 |
|
Talewal |
|
|
1 |
|
|
1 |
|
Tapa |
|
1 |
|
1 |
1 |
3 |
|
Thirkriwala |
|
|
1 |
|
|
1 |
|
Chhajli |
|
1 |
|
|
|
1 |
|
Dirbha |
|
|
|
1 |
|
1 |
|
Kauhrian |
|
|
|
|
1 |
1 |
|
Khanauri Kalan |
|
|
|
|
1 |
1 |
|
Khanauri Madi |
|
1 |
|
1 |
|
1 |
|
Lehragaga |
|
1 |
|
|
1 |
2 |
|
Moonak |
|
|
1 |
|
1 |
2 |
|
Sunam |
|
1 |
1 |
1 |
1 |
5 |
|
Sullar |
|
|
|
1 |
|
1 |
(Statistical Abstract
of Punjab, 1978, pp. 588-590)
APPENDIX II
Work done by the
Co-operative Agricultural Credit Societies in the Sangrur District, 1973-74 to
1977-78
|
|
|
Membership |
|
|
|
|
|
Co-operative Year ending June |
No. of Co-operative Societies at the end of year |
Societies |
Individuals |
Share capital paid up (Rs in Lakhs) |
Loans advanced during the year (Rs in lakhs) |
Deposits (Rs in lakhs) |
|
1973-74 |
740 |
|
1,25,934 |
122.27 |
511.60 |
28.60 |
|
1974-75 |
740 |
|
1,25,934 |
|
132.89 |
31.39 |
|
1975-76 |
740 |
|
1,28,137 |
141.80 |
624.08 |
30.73 |
|
1976-77 |
740 |
|
1,29,383 |
156.91 |
637.04 |
30.18 |
|
1977-78 |
740 |
|
1,31,675 |
167.73 |
757.27 |
28.22 |
(Source: Assistant
Registrar, Co-operative Societies, Sangrur)
APPENDIX III
Work done by the
Co-operative Non-Agricultural Credit Societies in the Sangrur District, 1973-74
to 1977-78
|
|
|
Membership |
|
|
|
|
|
Co-operative Year ending June |
No. of Co-operative Societies at the end of year |
Societies |
Individuals |
Share capital paid up (Rs in Lakhs) |
Loans advanced during the year (Rs in lakhs) |
Deposits (Rs in lakhs) |
|
1973-74 |
81 |
|
4744 |
2.05 |
|
0.19 |
|
1974-75 |
81 |
|
4802 |
2.07 |
|
0.19 |
|
1975-76 |
81 |
|
4802 |
2.09 |
|
0.19 |
|
1976-77 |
81 |
|
4802 |
2.06 |
|
0.19 |
|
1977-78 |
81 |
|
4802 |
2.06 |
|
0.19 |
(Source: Assistant
Registrar, Co-operative Societies, Sangrur)
APPENDIX IV
Work done by the
Co-operative Marketing Societies in the Sangrur District, 1973-74 to 1977-78
|
Co-operative year ending June |
|
Membership |
|
|
|
||
|
No. of Societies |
Societies |
Individual |
Total |
Share Capital paid up (Rs in lakhs) |
Working Capital (Rs in lakhs) |
Value of goods marketed (Rs in lakhs) |
|
|
1973-74 |
10 |
7194 |
810 |
8004 |
11.79 |
152.45 |
1311.21 |
|
1974-75 |
10 |
7433 |
817 |
8250 |
2.76 |
170.40 |
1429.37 |
|
1975-76 |
10 |
8703 |
825 |
9533 |
3.07 |
255.99 |
1625.14 |
|
1976-77 |
10 |
9803 |
846 |
10,649 |
13.75 |
235.53 |
1624.90 |
|
1977-78 |
10 |
10,042 |
847 |
10,849 |
14.07 |
330.58 |
1913.93 |
(Source: Assistant
Registrar, Co-operative Societies, Sangrur)